Strategic Trade Management Act

Case Overview and Summary

Summary of the Strategic Trade Management Act (STMA)

Title and Policy Declaration (Sections 1-2)
- The Act is known as the "Strategic Trade Management Act (STMA)".
- It declares the policy of the State to be free from Weapons of Mass Destruction (WMD) and to fulfill international commitments, including UN Security Council Resolution 1540, by establishing domestic controls to prevent WMD proliferation and facilitating responsible trade in strategic goods.

Scope and Coverage (Section 3)
- The Act applies to any natural or juridical person operating in the Philippines who engages or intends to engage in:
    - Export, import, transit, or transshipment of strategic goods.
    - Provision of related services.
    - Re-export of strategic goods imported from the Philippines.
    - Reassignment of strategic goods imported from the Philippines.

National Strategic Goods List (NSGL) (Section 4)
- A National Strategic Goods List (NSGL) shall be established, comprising:
    - Annex 1: Military Goods.
    - Annex 2: Dual-Use Goods.
    - Annex 3: Nationally Controlled Goods.
- The NSGL shall be published in the Official Gazette and newspapers and regularly updated.

Definitions (Section 5)
- The Act provides definitions for key terms, including:
    - Authorization, carrier, dual-use goods, end-use controls, end-user, export, import, military goods, nationally controlled goods, premises, reassignment, re-export, registration, related services, strategic goods, technical assistance, technology, transporting, transit, transshipment, unlisted goods, and WMD.

Implementing Structure and Mechanism (Sections 6-9)
- The National Security Council-Strategic Trade Management Committee (NSC-STMCom) is the central authority, chaired by the Executive Secretary.
- The Strategic Trade Management Office (STMO) under the Department of Trade and Industry is the executive and technical arm.
- The powers and functions of the NSC-STMCom and STMO are outlined.

Responsibilities of Persons (Sections 10-13)
- Persons intending to engage in regulated activities must obtain authorization from the STMO. (Section 10)
- End-use controls may be imposed on unlisted goods and related services. (Section 11)
- The STMO can certify the end-use of strategic goods in the Philippines. (Section 12)
- Persons engaging in regulated activities must register with the STMO. (Section 13)

Authorization and Exemptions (Sections 14-15)
- Persons must apply for authorization from the STMO before engaging in regulated activities. (Section 14)
- Exemptions from authorization requirement are provided for certain government activities. (Section 15)

Appeals, Liability, and Confidentiality (Sections 16-18)
- Persons can appeal decisions on registration, authorization, or penalties. (Section 16)
- The STMO is not liable for damages caused by denying, suspending, or revoking authorizations. (Section 17)
- Confidential business information obtained under the Act shall not be disclosed, except in certain circumstances. (Section 18)

Violations, Penalties, and Sanctions (Sections 19-29)
- The Act outlines unlawful acts and corresponding penalties, including imprisonment and fines ranging from P100,000 to P5,000,000. (Section 19)
- Attempts to commit violations are also penalized. (Section 20)
- Procedures for investigation, administrative penalties, criminal liability, forfeiture, and protection of officers are provided. (Sections 21-27)
- The Regional Trial Court has jurisdiction over criminal prosecutions. (Section 28)
- Provisions for international legal cooperation are included. (Section 29)

Final Provisions (Sections 30-35)
- The Act mandates the issuance of Implementing Rules and Regulations within 6 months. (Section 30)
- Appropriations for implementation shall be charged against the current year's budget of the DTI and included in the annual General Appropriations Act. (Section 31)
- The Act includes separability, suppletory application, repealing, and effectivity clauses. (Sections 32-35)